23
January 2008
NACHINGWEA NICKEL JV IN TANZANIA INTERSECTS 21 METRES OF
NICKEL SULPHIDE AT ZONE J AND DISCOVERS NEW SULPHIDE NICKEL ZONES
IMX
Resource NL is pleased to report the final core assay results from the
remaining 31 drill holes of the 2007 Nachingwea JV drilling program in Tanzania
which were announced by
Nachingwea
JV partner, TSXV listed Continental Nickel Limited (“CNI”) in which
IMX Resources has a substantial shareholding of 47.6%.
In
addition to intersecting Ni-Cu sulphides in followup holes at NAD013 and newly
discovered conductor Zones H, I, J, and L (ASX: 21 November 2007 and 11
December 2007), the new drilling has also identified new Ni-Cu mineralisation
at Zones G, and M (CNI release; Figure 1-3 and Table). Of particular note is
hole NAD07-069, the third hole targeting Zone J, which returned an outstanding
result of 21.0 metres at 3.35% Ni and 0.46%
Cu, from 30.0 metres including 7.11% Ni and 0.71% Cu over 6.35 metres.
The
Nachingwea project is a 70:30 JV between CNI and IMX Resources. In 2007, 53
drill holes totalling 10,514 metres were completed testing twelve conductive
targets identified
from a
ground TDEM survey completed by Crone. The highly successful 2007 drilling
program has discovered 6 significant new, near surface Ni-Cu sulphide zones in
addition to the NAD013 zone discovered by IMX in 2006. It has also intersected
low grade Nimineralisation from a number of other targets including F, and P.
Of the 53 holes drilled in 2007, 24 have intersected sulphide mineralisation
grading greater than 2% Ni, over core widths ranging between less than 1 metre
and up to 21.0 metres. Downhole EM surveys have been completed and the data is
currently being modelled and interpreted.
The
initial Zone J discovery hole NAD07-030 intersected 17.95 metres of net
textured sulphide mineralisation grading 2.59% Ni and 0.41% Cu (ASX: 11
December 2007).
Followup
holes NAD07-065 and 069 were drilled on the same section 20m southeast along
strike of NAD07-030. Both holes intersected massive to net textured sulphides
with NAD07-
065
returning 16.3 metres at 2.88% Ni and 0.44% Cu from 34.7 metres down hole, and
NAD07-069 intersecting 21.0 metres grading 3.35% Ni and 0.46% Cu from 30.0
metres
down
hole. This interval includes a 6.35 metre interval of massive sulphide
mineralisation starting at 32.65 metres grading 7.11% Ni and 0.71% Cu.
The
Zone J discovery of high grade (greater than 2.5% Ni) massive to net textured
sulphide mineralisation over a significant thickness on the east side of the
Ntaka intrusion, highlights
the
prospectivity of the region and opens a substantial area for evaluation. Zone J
is a high priority target for the 2008 field season.
At Zone
M, a single drill hole NAD07-044 tested an isolated conductive target located
approximately 650 metres northeast of Target L (CNI release; Figure 1). This
hole intersected disseminated, net textured and semi-massive sulphide
mineralisation within ultramafic rocks. The sulphide zone graded 1.98% Ni and
0.47 % Cu over 11.3 metres, from 83.0 metres including 5.3 metres at 3.19% Ni
and 0.76% Cu. The mineralisation remains open in all directions.
Followup
drilling at the NAD013 zone was completed along strike to the northwest, as
well as up and down dip of the original discovery holes. New holes intersected
variable widths of
high grade
sulphide mineralisation with best results including 0.25 metres at 10.15% Ni
and 0.15% Cu at 39.75 metres from NAD07-058, and 0.6 metres of massive sulphide
grading
10.3%
Ni and 0.99% Cu from 49.0 metres in NAD07-056. Drill hole NAD07-060 intersected
a strong stringer to massive sulphide zone at 91.9 metres grading 4.45% Ni and
3.01% Cu
over
5.2 metres.
The
NAD013 zone remains open down dip and along strike to the northeast where hole
NAD07-068 drilled 250 metres north of the NAD013 zone returned an interval of
disseminated
to net textured mineralisation starting at 52.0 metres grading 1.1% Ni and
0.22% Cu over 6.4 metres. This intersection indicates a possible linkage
between the
NAD013
zone and the newly discovered Zone L located 200 metres north of hole NAD07-
068 (CNI release; Figure 2).
Nickel
mineralisation intersected at Zone G is generally lower in grade (0.52 to 2.26%
Ni) however significant (up to 17.1 metres), confirms the potential for large,
lower grade
sulphide
zones at relatively shallow depths.
Craig
MacDougall, President and CEO of CNI, reported “The exploration team has
in one field season discovered six new Ni-Cu sulphide zones, near surface, that
exhibit outstanding
nickel
grades over significant thicknesses. All of the new discoveries remain to be
further evaluated and there is potential for one or more to develop into a
significant deposit. In
addition,
the potential for other discoveries on the property remains outstanding and the
completion of the airborne survey will provide immediate focus to identify
target areas of
interest
for exploration in 2008”.
IMX is
very pleased with the progress made by the Continental Nickel JV team in 2007
and looks forward to the recommencement of the drilling program in 2008.
The
full TSXV release by Continental Nickel outlining all the results from the
remaining 31 drillholes is attached.
Nachingwea Holding Structure
IMX
Resources interest in the Nachingwea project are held indirectly through a
47.6% interest in Continental Nickel, which holds a 70% interest in the
Tanzanian JV company, Ngwena Limited. Ngwena is
the licence holder for the Nachingwea tenements. IMX Resources holds a 30%
direct interest in the project through a 30% interest in Ngwena.
IMX
Resources 30% interest is free carried up to the completion of a feasibility
study or the expenditure of Cdn$15m. Continental Nickel can earn an additional
5% on completion of the feasibility study and a
further 5% upon the expenditure of Cdn$15m.
DUNCAN MCBAIN
MANAGING DIRECTOR
For further information, please contact:
Duncan McBain
Managing Director
Tel: +61 8 9486 8688
E: dmcbain@imxres.com.au
Investor Relations:
Warrick Hazeldine
Purple Communications
Tel: +61 8 9485 1254
E: whazeldine@purplecom.com.au
About IMX Resources NL
IMX
Resources NL (ASX:IXR) – formerly Goldstream Mining NL (ASX:GDM) –
is headquartered in Perth, Western Australia, and listed on the
Australian Stock Exchange
(ASX).
IMX
Resources is a diversified mining company with projects in South
Australia, Tasmania and Tanzania, East Africa,
focusing on a range of commodities including iron-ore, nickel,
gold,
copper, platinum and uranium.
The
company is disciplined in following a careful strategy to maximise shareholder
value by discovering and developing ore bodies. IMX Resources achieves this by
participating in
multiple,
quality exploration projects in joint ventures with global mining companies,
and by listing spin-off companies, to ensure programs with high potential are
well-funded, while
retaining
a significant interest to provide exposure for IMX Resources shareholders. In
2007 IMX Resources shareholders have had leverage to $19m of exploration, with
IMX
Resources
contributing $1.5m.
IMX Resources
100%-owned project is Cairn Hill, 55 kilometres south-east of Coober Pedy, South Australia.
This unique magnetite Fe – Cu – Au project is close to the Darwin to
Adelaide railway
line. Studies indicate the project is viable and will produce a premium niche
magnetite product that does not require pelletisation for use in the iron and
steel industry in
addition
to having a significant Cu revenue stream.
In
Tanzania, Lonmin Plc is earning interest in IMX Resources Mibango and Luwumbu
platinum joint ventures. Lonmin currently funds and operates the exploration
for both
projects.
IMX
Resources spun off 70% of the Nachingwea Nickel - Copper project in Tanzania
into a Continental Nickel Limited (TSXV:CNI) in August 2007. IMX Resources
holds 47.6%% of
Continental
Nickel and retains a 30% interest in the Nachingwea Nickel - Copper project
through a joint venture company structure.
IMX
Resources owns 39.5% of Uranex (ASX:UNX), a spin-off company from IMX
Resources, which listed on the ASX in October 2005 and is dedicated uranium
company
with
assets in Australia and Tanzania.
Visit: www.imxresources.com.au
Press Release
Continental Nickel intersects 3.35% Ni and 0.46% Cu over 21.0
metres, including 7.11% Ni and 0.71% Cu over 6.35 metres at the newly
discovered Zone J from the Nachingwea Project, Tanzania
Toronto, Ontario (January 22, 2008): Continental Nickel Limited
(TSXV: CNI) is pleased to announce the remaining 2007 drill assay results from
its 70% owned Nachingwea nickel sulphide project in Tanzania.
The Nachingwea project is a 70:30 JV with IMX Resources NL
(“IMX”) (formerly Goldstream Mining NL) of Australia. In 2007, 53 drill holes
totalling 10,514 metres were completed testing twelve conductive targets
identified from the Crone ground TDEM survey. The 2007 drill program was highly
successful, discovering six new, near surface Ni-Cu sulphide zones in addition
to the NAD013 zone discovered by IMX in 2006. 24 of the 53 holes drilled in
2007 intersected sulphide mineralization grading greater than 2% Ni, over core
widths ranging from less than 1 metre to 21.0 metres.
Results for 22 drill holes were reported up to December 10, 2007.
This release describes the results from the remaining 31 drill holes. The
results are listed in the attached table. The locations of the various holes
are illustrated on the attached figures.
Highlights from the current results include:
• Target J:
o NAD07-069 intersects 21.0 metres grading 3.35% Ni and 0.46%
Cu,
including 7.11% Ni and 0.71% Cu
over 6.35 metres;
o NAD07-065 intersects 16.3 metres grading 2.88% Ni and 0.44%
Cu,
including 5.71% Ni and 0.54% Cu
over 3.4 metres;
• Target H:
o NAD07-043 intersects 6.8 metres grading 5.53% Ni and 0.31%
Cu,
including 15.89% Ni and 0.77% Cu
over 2.15 metres;
• NAD013:
o NAD07-060 intersects 5.2 metres grading 4.45% Ni and 3.01%
Cu;
• Target M (New Discovery):
o NAD07-044 intersects 1.98% Ni and 0.47% Cu over 11.3 metres;
including 3.19% Ni and 0.76% Cu
over 5.3 metres.
Bore hole EM surveys were completed on the 2007 drill holes during
November and December and the data are currently being modelled and
interpreted. With the receipt of all outstanding drill hole assays, the company
is integrating drill hole and geophysical data in order to prioritize targets
and design an aggressive 2008 follow up drill program. It is expected that the
2008 field program will commence by April.
A 5900 line kilometre airborne VTEM survey was also completed in
December, with processing and interpretation of the data in progress. Results
will be reported once they are received.
Target J:
The initial discovery of Zone J was reported December 10, 2007. Discovery
drill hole NAD07-030 intersected 17.95 metres of net textured sulphide
mineralization grading 2.59% Ni and 0.41% Cu. The mineralization appears to be
nearly flat lying at very shallow depths (starting at 30 metres depth) and was
further tested by drill holes NAD07-065 and 069 as described below.
Hole NAD07-065 was drilled 20 metres southeast along strike of the
discovery hole NAD07-030 and intersected 16.3
metres of massive to net textured sulphides from 34.7 metres down hole grading
2.88% Ni and 0.44% Cu. Massive sulphide mineralization
was intersected at the start of the interval and graded 5.71% Ni and 0.54% Cu
over 3.4 metres. Drill hole NAD07-069 was drilled 20 metres up dip on the same
section as NAD07-065 and intersected a 21.0
metre interval of massive to net textured sulphides from 30.0 metres down hole
grading 3.35% Ni and 0.46% Cu. This interval includes a 6.35 metre interval of
massive sulphide mineralization starting at 32.65 metres grading 7.11% Ni and
0.71% Cu.
The discovery of high grade (greater than 2.5% Ni) massive to net
textured sulphide mineralization over a significant thickness on the east side
of the Ntaka intrusion opens a substantial area for evaluation.
The J Zone is a priority target for follow up in the 2008 program.
Target H:
Follow up drilling confirmed the discovery of high grade Ni
mineralization at Target H, that was announced on November 20, 2007 (drill hole
NAD07-028 intersecting 7.50% Ni and 1.15% Cu over 9.55 metres) This new
sulphide zone is shallow dipping and occurs at shallow depths of less than 60
metres.
Drill holes NAD07-041 and 043 were drilled 20 metres along strike
to the southeast.
Hole NAD07-041 intersected narrow zones of sulphide mineralization
starting at 84.6 metres down hole grading 2.07% Ni and 0.71% Cu over 3.75
metres (including 9.01% Ni and 0.44% Cu over 0.75 metres).
Hole NAD07-043 was drilled 20 metres down dip on the same section
as NAD07-043 and intersected disseminated to
massive sulphide mineralization starting from 84.0 metres down hole grading
5.53% Ni and 0.31% Cu over 6.80 metres, including a 2.15 metre interval of
coarse massive sulphides grading 15.98% Ni and 0.77% Cu.
Drill hole NAD07-070 drilled midway between Zones H and NAD013,
primarily as a platform to complete a bore hole EM survey, intersected a number
of intervals of sulphide mineralization including 1.70 metres grading 1.54% Ni
and 0.49% Cu from 99.15 metres; 5.0 metres grading 1.07% Ni and 0.20 % Cu from
125.0 metres and 4.05 metres grading 1.41% Ni and 0.43 % Cu from 288.75 metres
down hole.
The upper two intervals may correlate with Zone H which would
suggest that the zone may extend northwest along strike for 125 metres.
Zone H remains open along strike to both the northwest and
southeast of the existing drilling. The dip extent across the center of the
zone to date appears to be limited, but further drill testing is warranted
given the pinch and swell and bifurcating nature of the high grade massive
sulphide mineralization.
NAD013 Zone:
At the NAD013 zone originally discovered by IMX in 2006,
additional drill testing was completed along strike to the northwest and up and
down dip of the original discovery holes. Holes NAD07-053 and 055 were drilled
20 metres along strike to the northwest of NAD06-013 (11.23% Ni, 1.74% Cu over
3.0 metres, previously reported). Hole NAD07-053 intersected disseminated to
stringer sulphide mineralization starting from 89.1 metres grading 1.22% Ni and
0.46% Cu over 5.1 metres and 2.75 metres grading 1.69% Ni and 0.39% Cu from 121.25
metres. Hole NAD07-055 was drilled 25 metres up dip on the same section and
intersected a massive sulphide zone grading 4.73% Ni and 0.51% Cu over 0.60
metres at 63.85 metres down hole.
Holes NAD07-056 and 058 were drilled 20 metres up dip of the NAD06-013
and NAD07-019 intersections, respectively, and both holes intersected narrow
massive sulphide zones representing the up dip extent of the NAD013 sulphide
zone. NAD07-056 intersected 0.6 metres of massive sulphide grading 10.3% Ni and
0.99% Cu at 49.0 metres down hole, while NAD07-058 intersected a 0.25 metre
interval grading 10.15% Ni and 0.15% Cu at 39.75 metres down hole.
Drill holes NAD07-060 and 062 tested down dip of holes NAD07-019
and 020 (previously reported) on the same section. Drill hole NAD07-060
intersected a strong stringer to massive sulphide zone at 91.9 metres grading 4.45% Ni and 3.01% Cu over 5.2 metres. Hole NAD07-062 tested 40 metres down dip on the same section as
NAD07-060 intersecting disseminated to net textured mineralization 122.0 metres
down hole grading 2.41% Ni, 0.27% Cu over 2.1 metres.
The zone remains open down dip and along strike to the northeast
where hole NAD07-068 drilled 250 metres north of the NAD013 zone returned an
interval of disseminated to net textured mineralization starting at 52.0 metres
grading 1.1% Ni and 0.22% Cu over 6.4 metres. This intersection indicates a
possible linkage between the NAD013 zone and the newly discovered L zone (drill
hole NAD07-039 intersected 2.40% Ni and 0.50% Cu over 15.25 metres, reported on
December 10, 2007) located 200 metres north of drill hole NAD07-068.
Target M:
Target M is an isolated conductive target located approximately
650 metres northeast of Target L and represents another new Ni-Cu zone
discovered on the property.
The target was tested by a single drill hole NAD07-044 which
intersected disseminated to net textured to semi-massive sulphide
mineralization within ultramafic rock starting at 83.0 metres down hole. The
sulphide zone graded 1.98% Ni and 0.47 % Cu
over 11.3 metres, including a 5.3 metre interval grading 3.19% Ni and 0.76% Cu.
The mineralization remains open in all directions.
Target G:
Assays from eleven additional drill holes testing Target G are
presented in the attached table. Although of generally lower grades (0.52 to
2.26% Ni), significant thicknesses of sulphide mineralization (up to 17.1
metres) have been intersected confirming the potential for a large, lower grade
sulphide zone at relatively shallow depths.
Craig MacDougall, President & CEO of Continental Nickel
Limited, reported “the 2007 exploration program on Nachingwea project has
met with unparalleled success given the early stage of exploration on this vast
property. The exploration team has in one field season discovered six new Ni-Cu
sulphide zones, near surface, that exhibit outstanding nickel grades over
significant thicknesses. All of the new discoveries remain to be further
evaluated and there is potential for one or more to develop into a significant
deposit. In addition, the potential for other discoveries on the property
remains outstanding and the completion of the airborne survey will provide
immediate focus to identify target areas of interest for exploration in
2008”.
Quality Control
The drilling was completed by Tandrill Limited of Tanzania.
Drill core samples (NQ) are cut in half by a diamond saw on site. Half of the
core is retained for reference purposes and half is sent for analysis.
Samples are generally collected in 1.0 metre intervals or less at
the discretion of the site geologists. Sample preparation is completed at the
ALS Chemex preparation lab in Mwanza,
Tanzania.
Sample pulps are sent by courier to ALS Chemex analytical laboratory in Vancouver, Canada.
Blank samples and commercially prepared and certified Ni sulphide analytical
control standards with a range of grades are inserted in every batch of 20
samples or a minimum of one per sample batch. Analyses for Ni, Cu and Co are
completed using a peroxide fusion preparation and ICP-AES finish (ME-ICP81). Analyses
for Pt, Pd, and Au are by fire assay with an ICP-AES finish (PGM-ICP23).
The quality control, technical information and all aspects of the
exploration program were supervised by Patricia Tirschmann, P.Geo., Vice
President of Exploration for CNI. Ms. Tirschmann is a qualified person as
defined by National Instrument 43-101.
About Continental Nickel
Continental Nickel Limited is an exploration company focused on
developing and advancing nickel sulphide exploration projects in geologically prospective,
but under explored regions globally.
Continental Nickel has 30,009,727 shares issued and outstanding
(32,435,916 on a fully-diluted basis) and trades on the TSX Venture Exchange
under the symbol CNI.
On behalf of Continental Nickel Limited
“Craig MacDougall”
President & Chief Executive Officer
For further information please contact:
Continental Nickel Limited
Craig MacDougall, P. Geo.
President and CEO
Tel: (416) 364-7111
Fax: (416) 364-8114
E: info@continentalnickel.com
Web site: www.continentalnickel.com
CAUTIONARY STATEMENT: The TSX Venture Exchange does not accept
responsibility for the adequacy or accuracy of this release. No stock exchange,
securities commission or other regulatory authority has approved or disapproved
the information contained herein. This News Release includes certain
“forward-looking statements”. All statements other than statements
of historical fact, included in this release, including, without limitation,
statements regarding potential mineralization and reserves, exploration
results, future plans and objectives of Continental Nickel Limited, are
forward-looking statements that involve various risks and uncertainties. There
can be no assurance that such statements will prove to be accurate and actual
results and future events could differ materially from those anticipated in
such statements. Important factors that could cause actual results to differ
materially from Continental Nickel Limited’s expectations are the risks
detailed herein and from time to time in the filings made by Continental Nickel
Limited with securities regulators.
Information in this announcement relating to exploration results
is based on data compiled by Patricia Tirschmann, P. Geo., who is a registered
member of the Association of Professional Geoscientists of Ontario and who is a
full-time employee of the company. Patricia Tirschmann has sufficient relevant
experience to qualify as a Competent Person under the 2004 Edition of the
Australasian Code for the Reporting of Exploration Results, Mineral Resources
and Ore Reserves. Patricia Tirschmann consents to the inclusion of the data in
the form and context in which it appears.
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